HassConsult has unveiled second quarter results for housing prices and for rentals in Kenya, as well as a special report on capital gains in the Kenyan residential property market, comparing them to the US and UK.

The company which sells homes in the high and middle segments of the market also now conducts the only property pricing index within east Africas largest economy.

The latest Q2 2010 results give a clear picture of a market that has remained resilient throughout the double knock of both domestic and international recession.

The asking prices for townhouses and apartments in Nairobi fell very slightly in the second quarter, by 0.4%, after a surge of 7.4% in the first quarter.

However the price at which properties were actually sold for - showed a third consecutive marginal gain, up 0.5%, following a 1.8% in the first quarter, and a 0.4% gain in the final quarter of 2009.

The continuing nudge upwards of selling prices suggest the market is now unlikely to suffer any marked downturn in prices in the near future, with economic growth now picking up, buying activity improved, and some spots of competition for properties.

Despite the double impact of a domestic recession brought on by post-election violence and food shortages, as well as the world financial crisis, Hass says that the Kenyan market has remained absolutely robust, never faltering, and is now showing all signs of a return to some measured price growth.

The report says that in a now solid and stable Kenyan market, the balance continues to shift away from cash-financed property purchasing, significantly by landlords for rental, towards mortgage-financed purchasing by professional classes moving from rented accommodation to home ownership.

The impact of new partnerships in housing finance and more innovative mortgage offerings continues to be felt at the sales desk.

Rental prices have remained flat again in the second quarter, with the arrival of ample new supply, and some tenants converting to home ownership. Hass are anticipating some subdued rent price rises ahead, but almost certainly at permanently reduced rental yields.